Big Differences in Health Care Costs

Jennifer Lewerenz | Aug 10, 2018 AT 11:00 am

Click to EnlargePhoto: KNSI News

(KNSI) - A new report from the Minnesota Department of Health shows
large price differences in health care costs from one hospital to another, and
even wild swings in pricing from one patient to another in the same hospital.

A patient undergoing one of four common procedures: spinal
fusion surgery, major bowel surgery, appendectomy and removal of uterine
fibroids, may pay between two and seven times as much as another patient at the
same hospital.

The report says this can mean differences of $7000 and
$70,000 dollars.

Researchers studied prices paid between July 2014 and June
2015.

Pricing for the most expensive of the four – spinal fusion
surgery and major bowel surgery – varied by three fold or more within
hospitals. Even hospitals with lower than average pricing showed large
variations in cost.

Health Commissioner Jan Malcom says, “This degree of
variation shows that the health care market lacks meaningful transparency and a
consistent link between cost and prices. This undermines effective competition
and rational pricing of health care services, and contributes to the cost
pressure that families and businesses are experiencing. Shedding light on
prices is a step in the right direction toward a better functioning market
where individuals and employers can play a stronger role as informed consumers.”

The research was not designed to show what is causing the
differences within and between hospitals. Likely factors include differences in
labor markets, operating costs, hospital and patient characteristics, and
practice styles.

Posted By Jennifer Lewerenz

News Director

Jennifer is a Minnesota native, spending the last 20 plus years of her radio career in cities across the state including St. Cloud, Minneapolis, Hutchinson and Faribault. She is married and lives in the St. Cloud area. She and her husband enjoy cooking, fishing, laughing and traveling.